Facebook’s maiden tryst into the realm of blockchain and cryptocurrency has taken the world by storm. The Libra project, despite looking at a launch date of 2020, is today the talk of the town.
David Marcus, Former President of PayPal and who was specifically brought to Facebook to lead the Blockchain project and given the position of Vice President of Messaging Products, stated in an interview with Decrypt Media that Project Libra is in it for the long haul. Hours after the official Libra whitepaper surfaced, Marcus told Tim Copeland,
“I want this thing [Libra] to be around hundreds of years from now.”
With Facebook’s entry, comes the question of transparency and reliability. Facebook, following a disastrous 2018 which saw its reputation tank amid privacy accusations, will now have to regain the trust of its customer base who are now entrusting the social media giant with more than just cat memes and pictures of their grandmothers.
Responding to this factor of monetary accountability, Marcus stated that there won’t be any ‘commingling’ of financial or social data. He added that the Calibra wallet, the touted wallet for Libra, will not have any access to the funds of the customers.
“If we want to compete on the network with the other wallets that will be there, the only way we can do that is by making strong commitments that even Facebook Inc. will not have access to your financial data on your Calibra wallet.”
Facebook is not the sole big name in Project Libra. As their “consortium,” goes, the Menlo Park giant will entertain backers like Visa, MasterCard, PayPal, Uber, Vodafone etc., each with their own repository of customer information. It thus begs the question, is the Libra project a platform for the sharing of customer information, both financial and social.
It was also previously reported that these “backers” will pay $10 million to participate in the governance system of Project Libra. Marcus responded to this forthrightly,
“Categorically no. The reason for the investment is to align everyone in the long term ecosystem and success and fund the association for the first few years. And to fund the incentives to drive adoption and utility of Libra in the next few years.”
He added that the transactions would be made “between custodial wallets,” and only settlement will take place on the blockchain. Validators will not be privy to even observe the same, he stressed.
Presently, these backers or “validators” are only 28 in number. However, by the time Libra is officially launched, he expects this number to rise to 100.
These validators will make money in two ways. First, from a simple return on their minimum $10 million “buy-in” which, Marcus stated, would be in the form of securities or other assets. Second, these validators can incorporate Libra to make businesses on top of the cryptocurrency.
Being a member of Project Libra will allow these validators to build the future of the cryptocurrency and not merely tag along for the ride, he added.
Despite building the Libra Project from the ground-up, Facebook will not have any “control” over governance procedures. To reinforce privacy accountability, the social media company will stay away from data collection by means of subsidiaries. However, Marcus didn’t elaborate on the same.
Facebook’s revenue model for Project Libra will be primarily based on ads and fees. In the future, the Calibra App will aim to become the crypto-equivalent of a mobile banking application, offering a slew of financial services. Marcus concluded by stating that the privacy-focused Facebook will not be delving into private transactions.
Subscribe to AMBCrypto’s Newsletter